Environmental, Social, and Governance (ESG)

Question 1

The two different types of Ownership structure

( Corporate Governane ESG)

Answer 1

Dispersed: Many shareholders, non have the ability to exercise control.

Concentrated: An individual shareholder, or group, can exercise control.

Question 2

Ownership Strucutre: Dispersed Ownership, dispersed voting power

Answer 2

Weak shareholders, strong manager

Principle agent conflict can arise

Can be mitigated if controlling sharegolders are present

Question 3

Ownership Strucutre: Concentrated Ownership, concentrated voting power

Answer 3

Strong shareholders weak managers

Strong shareholders: Can allocate compnay resources to their benefit and can monitor managment